Ukraine’s government has formally approved the start of the liquidation process for the Commission for the Regulation of Gambling and Lotteries (KRAIL), marking a pivotal shift in the country’s approach to gambling oversight. Starting April 1, 2025, the commission’s duties will be absorbed by a newly created state agency called PlayCity, under the coordination of the Ministry of Digital Transformation.
This move follows long-standing concerns over KRAIL’s inefficiency in regulating the gambling industry. According to government sources, the commission failed to provide sufficient oversight, prompting the need for structural reform. Law enforcement is currently investigating over 450 criminal cases tied to illegal gambling operations, further reinforcing the urgency of the overhaul.
Digital Licensing and Anti-Corruption at the Forefront
PlayCity’s core mission will be to implement state policy in the gambling and lottery sectors through enhanced digital tools and more robust regulatory oversight. The digitalization of licensing procedures is a cornerstone of the new strategy, designed to improve transparency and reduce opportunities for corruption.
According to the Ministry of Digital Transformation, the reform is expected to result in more effective market regulation and stronger enforcement against unlawful gambling enterprises, especially those with connections to the aggressor state. In line with this, PlayCity aims to introduce new mechanisms for monitoring casino activities and shutting down unlicensed operations.
“Eradicating corruption, bringing illegal casinos to zero, and generating meaningful tax revenues for the state budget” are key targets of the new agency, said Deputy Minister of Digital Transformation Oleksandr Bornyakov in a recent public statement.
Boosting Tax Revenues and De-Shadowing the Market
With the shift to PlayCity, officials expect to unlock significant financial benefits for Ukraine’s economy. The Ministry estimates that annual tax contributions from the legal gambling and lottery industry could rise to UAH 10 billion (approximately $240 million). These funds will be directed toward supporting the Ukrainian Defense Forces and other national priorities.
The restructuring is also designed to promote fair competition by establishing clear, transparent operating conditions for all licensed operators. Officials believe that this clarity will help bring the industry out of the shadows and foster a healthier, more accountable gaming environment in Ukraine.
Next Steps and Expert Reactions
While PlayCity will inherit much of KRAIL’s team, resources, and headquarters, several key steps remain before it becomes fully operational. These include appointing the agency’s leadership and finalizing its institutional rules.
Danylo Hetmantsev, Head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, voiced support for the agency’s creation and pledged backing from the Committee. However, he also questioned the naming of the new body—PlayCity—noting its similarity to the name of a private operator. In response, Bornyakov clarified via Facebook that the name had been in development for some time and may have been conceived by Minister of Digital Transformation Mykhailo Fedorov.
From KRAIL to PlayCity: A Structural Reform with Broader Implications
Although the dismantling of KRAIL was first approved back in April 2024 following a presidential decree, its official liquidation now paves the way for a more modern, tech-driven approach to gambling regulation. PlayCity is positioned to usher in a new chapter in Ukraine’s gambling industry—one centered on transparency, effective oversight, and economic resilience.
Source:
Uriad ughvalyv rishennia pro pochatok likvidatsii KRAIL, Cabinet of Ministers of Ukraine, March 25, 2025.